LME aluminium to be weighed on by a strong US dollar

<p>Aluminium on London Metal Exchange will drop to USD 1,660-1,680/mt weighed on by strong US dollar and crude oil volatility. SHFE 1611 aluminium will struggle around the 5-day moving average and move at RMB 12,650-12,850/mt, predicted SMM. <br /><br />Discounts in the range of RMB 160-120/mt are expected in east China spot market over SHFE 1610 aluminium contract. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20aluminium.jpg" alt="News" width="500" height="266" /><br /><br />Key macroeconomic indicators <br /><br />1. Four big central banks- the European Central Bank, the Bank of Canada, the Bank of Indonesia and the Central Bank of Brazil are going to announce their interest rates for October this week.<br />2. China&rsquo;s September credit loans and third-quarter data are awaiting release this week.<br />3. Commodity prices rose on the back of sufficient liquidity. Depreciation of Yuan helped commodity prices in China remain firm. Supporting commodities uptick were sufficient supply-side reform. <br /><br />{googleAdsense}<br /><br />4. Trend of value-addition in Chinese markets and PPI continue, and retail sales logged over 10 per cent nominal growth supporting China&rsquo;s Q3 growth.<br />5. Fixed-asset investment still relies on government support, with transportation and electric heat production taking lion&rsquo;s share.<br />6. US 30-year interest rate soared over the past two weeks, so there remains the likelihood of a Fed rate hike in November.</p>